Gerald W. Frank v. United States

. This is an appeal by the United States Government from a district court decision holding that the taxpayer was entitled to a refund of taxes paid based upon the district court’s finding that amounts expended by the taxpayer in the course of his duties as a public servant were deductible either as ordinary and necessary business expenses or as charitable contributions.

Gerald W. Frank, during 1968, 1969,1970, and 1971, was employed by the United States Senate as an administrative assistant to Senator Hatfield of Oregon. During this time, his annual salary from the Senate was approximately $1200.00 per year. Although he originally planned to work for Senator Hatfield without receiving payment for his services, Frank was compensated in that amount so that he could go on the Senate floor as an employee of Congress in order to confer with the senator. During the same four years his income from his Salem, Oregon based activities and assets was approximately $88,000.00 per year, or 98% of his income.

While in Washington, the taxpayer first lived in a hotel, and then in a rented apartment. He considered himself a resident of Salem, Oregon, where he voted, owned a house, and had a…